European Court declines German gambling constraints

8 September 2010

German gambling constraints breach European Union law, the EU's greatest court has actually ruled.

The European Court of Justice (ECJ) stated German laws that secure state monopolies for betting were "unjustifiable".

The judgment could break the ice for foreign wagering companies to establish a presence in Germany.

A lobby group representing gaming companies, including PartyGaming and Bwin, called the judgement a "landmark".

German authorities have actually validated betting monopolies by saying that they help safeguard consumers from the unfavorable impacts of gaming.

But the ECJ said this promotion code was irregular with Germany's promo and "intensive advertising" of its gambling operations.

The court said: "The German guidelines on sporting bets constitute a limitation on the freedom to supply services and the freedom of establishment.

"The general public monopoly of the yohaig code organisation of sporting bets and lottos in Germany does not pursue the objective of combating the threats of gaming in a constant and methodical manner."

Several foreign betting companies, including Britain's Happy Bet and Gibraltar's Digibet, brought a case against German local authorities in Hesse and northern Schleswig-Holstein.

The European Gaming and Betting Association invited the ruling.

"This is a landmark judgment which will have a decisive effect on the much-needed reform in Germany," it said in a declaration.

"Other member states have actually opened or are opening their markets. They show that consumers can be better safeguarded in a market that is both managed and open to competition," it said.

However, European Lotteries, a lobby group for nationwide lotteries in 40 nations, disputed whether the ruling would open the German market.

"On the contrary," the group said in a declaration, "the court advised Germany that it has to manage more strictly the yohaig code offer of hazardous kinds of betting such as casino games and gaming machines.

"The court pointed again to the greater threats connected with internet betting."

EGBA

European Lotteries